News Updates September 23, 2022

23 Sep, 2022 11:29 pm

1.BTC Price Analysis: Bitcoin Trading Flat but is a Drop Below $18K Imminent?

Bitcoin continues to consolidate around the $19K support level as the bulls attempt to prevent a deeper crash. If unsuccessful, this could prolong the ongoing bear market and apply even more pressure on participants.

*The Daily Chart*

On the daily timeframe, the price has been retesting the $18K support level following rejection from the major bearish trendline. The 50-day and 100-day moving average lines have also rejected the cryptocurrency.

If BTC rebounds from the current support zone, the above-mentioned moving averages and the bearish trendline would be major dynamic resistance levels before the $24K area, which is a significant static resistance point.

The price should break above all of these in order to reverse the ongoing negative trend. On the other hand, if the $18K level gets broken to the downside, a rapid crash towards $15K and beyond becomes more possible.

*The 4-Hour Chart*

The price has been fluctuating in a tight range between $18K and $20K in the last few days, preparing for the next crucial move.

A double bottom pattern has been formed at the $18K level recently, which could push the price towards $20K once more. In the event of a bullish breakout, both $22,500 and $24K would be key resistance levels to watch in this timeframe.

The RSI indicator is also in a state of equilibrium, as recently, it has been oscillating around 50. The bulls and bears are currently struggling to take control, and the market could break out in either direction.

However, considering the higher timeframe bearish trend, a breakdown below $18K is still the more probable scenario.

Markets typically tend to bottom out when players experience substantial losses, referred to as “Capitulation.” Since long-term investors control most of the supply, the Bitcoin market emphasizes their losses. A multi-year bottom cannot occur without a long-term holders’ capitulation phase.

The Long-Term Holder SOPR’s 30-day exponential moving average and the BTC price are displayed on the chart below. It becomes evident that long-term holders capitulated over an extended period during previous bear markets.

The indicator has dropped below 1, a signal that long-term investors are under pressure to distribute. This has frequently initiated the final phase of the bear market.

However, it should be understood that this phase may require several months of volatility, followed by numerous significant shakeouts.

2. California’s Golden Gate University will educate students on blockchain and crypto

California-based Golden Gate University is set to offer blockchain and cryptocurrency education in collaboration with the decentralized web development-centered organization Filecoin Foundation.

The learning will focus on decentralized storage, technologies behind Web3, and the next generation of the internet while capitalizing on the crypto sector’s growth, Filecoin Foundation said in a press statement on September 7.

Under the program, the institution’s new Filecoin Foundation Blockchain Academy Lab will host meetups and training seminars to cater to the growing interest in cryptocurrencies at a higher education level.

The education program has already outlined key beneficiaries, including government officials and professors. They will be provided with resources to understand decentralized technology considering it a new segment of the education system.

Furthermore, through the virtual events, the lab is projected to reach out to students globally, especially those from underserved populations.

Overall, as the crypto sector grows, different entities have increasingly focused on offering related education. As reported by Finbold, the University of Cincinnati (UC) also unveiled a program to teach students cryptocurrencies such as Bitcoin (BTC) and new financial technologies.

3. Binance CEO “CZ” Rejects 1.2% Tax Burn Support For Terra Classic (LUNC)

Binance CEO “CZ” in an AMA on Friday said the crypto exchange will not implement the 1.2% tax burn for off-chain transactions of Terra Classic (LUNC) and USTC. As a result, the Terra Classic (LUNC) price fell nearly 10% to $0.00024 in an hour as Binance accounts for nearly 35% of LUNC supply. While Binance CEO believes the tax burn on off-chain will impact trading on Binance, the community pushes the crypto exchange to support it.

Binance Turns Down 1.2% Tax Burn for Terra Classic LUNC
Binance CEO “CZ” in an AMA on September 23 said Binance will support the Terra Classic community, but implementing the 1.2% tax burn on off-chain transactions would impact trading on the crypto exchange.

Binance CEO “CZ” Rejects 1.2% Tax Burn Support For Terra Classic (LUNC)
By Varinder Singh
2 hours ago
coingape Trade with Kyber
Binance CEO "CZ" Rejects 1.2% Tax Burn Support For Terra Classic (LUNC)

Moreover, Binance has implemented the 1.2% tax burn on deposits and withdrawals. However, the tax burn will not be implemented for on-chain transactions including spot and margin trading, as well as Binance Earn services.

“I think the blockchain should implement the burnt first, but I did not promise saying that right afterwards Binance will do XYZ did not do that, but that people may imply that or infer that, I can see where that’s coming from.”
He believes the 1.2% tax burn will make use cases on the blockchain meaningless. People will stop trading if more transaction fees are charged, making the blockchain less useful. The community wants the tax burn for Terra Classic (LUNC) on off-chain transactions. However, the implications of executing it are probably not feasible.

Binance CEO “CZ” in a tweet shared another option to implement a 1.2% trading fee themselves for the burn. He thinks of a feature to let users opt-in for a 1.2% trading fee and vote with fees.

After Binance CEO “CZ” refused to support the 1.2% tax burn for off-chain transactions, Terra Classic (LUNC) price tumbled nearly 10% in an hour. LUNC price is currently trading at $0.00025, down nearly 11% in the last 24 hours.

The trading volume of LUNC has also dropped, with the 24-hour low and high of $0.00024 and $0.00028, respectively.

Meanwhile, the community looks to sell LUNC or transfer everything off Binance onto Terra Station, where the 1.2% burn tax is supported.

4. New UK Law Can Seize And Freeze Crypto

The United Kingdom has introduced a new law that can seize, freeze, and recover cryptocurrencies, to combat criminal activities.

New Crypto Law To Combat Money Laundering
In a bid to crack down on fraud and money laundering in the country, the UK government has finally officially adopted the Economic Crime and Corporate Transparency bill, which was first introduced in May 2022. The bill provides guidance for law enforcement agencies to treat crypto as an essential component of evidence in criminal investigations. The legislature has also garnered the support of the UK Home Office, Department for Business, Energy & Industrial Strategy, Serious Fraud Office, and Treasury.

Director General of the National Crime Agency, Graeme Biggar, addressed the matter and the connection between crypto and money laundering activities, saying,

The law will also make it easier for legitimate companies and projects to get the necessary visibility and support by weeding out the malignant ones that abuse the sponsorships and patronage available in the industry. It will also tighten registration and heighten transparency requirements for the limited partnerships available across the UK, including Scotland, and prevent their abuse through money laundering and other criminal activities. This will greatly benefit legitimate businesses and investors across the nation to conduct operations and contribute positively to the economy of the UK.

The previous government was highly focused on making the UK the next global crypto hub. However, with the change in leadership, many were wondering if it spelled good news or bad for the country’s budding crypto industry. The new Prime Minister, Liz Truss, had spoken favorably towards crypto during her days as the Foreign Secretary. Therefore, speculations were rife about the direction that Truss would steer the industry. However, soon after her appointment, Truss’s government announced that it would continue the work towards making the UK a global crypto hub.

5. Malta lawyer investigated over bitcoin sent to alleged murderer of Daphne Galizia.

A prominent lawyer from Malta is being investigated by the US and Maltese authorities over a bitcoin transaction made to suspected criminal Yorgen Fenech. The funds were allegedly used to purchase a firearm on the dark web.

Fenech is currently being prosecuted in Malta over his alleged murder of journalist Daphne Caruana Galizia. She was killed in a car bombing in 2017.

Maltese authorities requested US assistance last year in the investigation over the illegal acquisition of weapons by Fenech with bitcoin.

A request by the US authorities was made on September 21 to a federal court in Delaware to investigate the transactions — thought to have been made by lawyer Aron Mifsud Bonnici through crypto exchanges Poloniex and Coinbase.

“… According to authorities in Malta, on November 25, 2018, Fenech inquired into the purchase of a Glock firearm and a Scorpion CZ automatic rifle for 0.9 bitcoin. On the same day, another individual, Aron Mifsud Bonnici, sent from his accounts at Coinbase and Poloniex 1 Bitcoin to Fenech, 0.9 bitcoin of which Fenech then used for the weapons purchase,” the request reads.

“One of the transactions that Mifsud Bonnici made that day to Fenech was in the amount of 0.46221 bitcoin from his Coinbase account to [a] wallet address. Moreover, on December 13, 2017, Mifsud Bonnici made a transaction of 1.3999 bitcoin from his Poloniex platform account to a BTC wallet,”

6. Crypto Exchange Coinbase Sued Over Patent Infringement
The lawsuit was filed by Veritaseum Capital on Thursday in U.S. District Court in Delaware.

Coinbase Global (COIN) is being sued by Veritaseum Capital LLC, which alleges that the crypto exchange has infringed on a patent awarded to Veritaseum founder Reggie Middleton.
According to Veritaseum, Coinbase has used the patent for some of its blockchain infrastructure, and the company is seeking at least $350 million in damages.
Coinbase didn’t immediately respond to CoinDesk’s request for comment Friday.

7. This Crypto-Friendly Bank is Suing the Fed and Why a Win Would Be Hugely Price-Positive for Digital Assets

U.S. digital asset-focused bank Custodia has filed a lawsuit against the Federal Reserve (FED) Board of Governors and the Federal Reserve Bank of Kansas City over “unlawfully” delaying its application for a master account with the FED. The bank received major backing earlier this week after seven U.S. Congressmen submitted a friend of the court brief. The lawmakers urged a Wyoming court to dismiss the FED’s motion to dismiss the lawsuit.

The brief was filed by three Republican senators, including Cynthia Lummis, Steve Daines and Kevin Cramer, and four GOP members of the House of Representatives, including Warren Davidson, Ted Budd, Trey Hollingsworth, and William Timmons. A similar document has also been submitted by the state of Wyoming, Yahoo! Finance reported

For more than 19 months, Defendants have refused to act upon Custodia's application for a master account with the Federal Reserve," the company said in its lawsuit.

The bank says the sued institutions violated the one-year statutory deadline for processing its application. They also breached the schedule contained on the master account paperwork which says that such a decision should take five to seven business days. If Custodia secures a favorable ruling, this could accelerate similar registration procedures for other crypto businesses.

Lummis, who represents the state of Wyoming in the U.S. Senate, has established herself as a crypto-friendly lawmaker, paving the way for legislation that could stimulate the industry’s growth. Last June, together with Democratic senator representing the state of New York, Kirsten Gillibrand, she introduced a draft bill, dubbed the 'Responsible Financial Innovation Act’ which makes “a clear distinction between digital assets that are commodities or securities”.

8. UK should lower crypto tax rate to encourage growth – MP Matt Hancock

Matt Hancock announced during Zebu Live that HMRC needs to take a growth-maximizing mindset by lowering taxes to foster innovation within crypto

HMRC, the U.K. tax authority, was the subject of focus for Hancock during the Q&A section of his address. The U.K. tax laws treat crypto the same as other assets meaning that a 20% capital gain tax applies to all crypto trades.

Any time a digital asset is traded for another, it is a taxable event. Further, activities such as mining and yield farming are considered income and taxed at 40% for anyone earning over £50,271. However, people earning less than £12,570 annually pay 0% income tax.

Capital gains tax in the U.K. is complicated to understand and involves calculating your income tax to establish if you are within the basic tax rate banding. Those within the ‘basic tax rate’ pay 10% capital gains tax, with others paying 20%.

Hancock, bullish on crypto and digital assets as a method for the U.K. to regain dominance in the global financial markets, now believes the U.K. tax rate for crypto does not best serve innovation within the country.

The MP also argued that some laws should be rewritten to accommodate innovations within the crypto industry. Further, Hancock asserted that:

During the keynote, Hancock repeatedly asked for feedback from the British public on the issues they face working in crypto in the U.K. Any U.K. citizens wishing to contact Hancock can do so via the details listed on the Parliament website.

News Updates September 23, 2022

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